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According to the results garnered from a new study from The Freedonia Group, demand for packaging machinery in China is forecast to increase 7.5 per cent each year to ¥49-billion (Cdn $7.6-billion) through 2016.

The Packaging Machinery In China report predicts that advances will be led by a growth in manufacturing output as domestic and international consumption of Chinese goods increases.

The development of e-commerce in China and producers’ efforts to expand distribution to more areas in China will lead to the greater use of packaging, resulting in growth of associated packaging machinery sales.

In addition, the intensity of packaging use in China will continue to rise for both functional and aesthetic reasons, further driving demand for packaging machinery. More stringent safety and hygiene standards for food, beverage, and medical products will drive demand for more advanced packaging equipment.

However, government efforts to conserve resources by reducing packaging material and restrictions related to over-packaging will limit growth through 2016.

Filling, form/fill/seal equipment largest product type Filling and form/fill/seal equipment will continue to be the largest product segment in value terms in 2016.

Suppliers will benefit from increasing consumption of packaged food and beverages in China as lifestyles continue to change in line with rising personal income levels. Demand for these types of machinery will also grow due to the development of the pharmaceutical industry and improved medical technology.

Demand for labeling and coding equipment is forecast to rise 8.2 percent per year through 2016, recording the strongest advances of any packaging machinery product. Gains will be supported by stricter product labeling requirements in the food and beverage industries in China, particularly requirements to increase traceability.

Trends in food and beverage markets have the largest effect on overall packaging machinery sales, as they accounted for over half of all demand in 2011. Gains are forecast to advance faster than the industry average through 2016.

Improving income levels and urban lifestyle trends will continue to stimulate growth with demand for machinery used to package medical, pharmaceutical, and personal care products is expected to expand at the fastest rate through 2016, due to an aging population and growing demand for pharmaceutical products, as personal income levels rise and access to healthcare grows to a wider proportion of the population.